Filing Your Return -> Disabilities -> Federal and provincial art and cultural tax credits
Line 370 Federal Children's Arts Amount Tax Credit (CATC)
Reduced for 2016, eliminated for 2017 taxation year
Income Tax Act s. 118.031, Regulations s. 9401
This non-refundable tax credit has been available since the 2011 taxation year, and is claimed on the personal tax return. The 2016 Federal Budget reduced the 2016 Children's Arts Amount Tax Credit to $250 from $500, and eliminated this credit for 2017 and later years. The additional tax credit for a child with a disability will remain at $500 for the 2016 taxation year.
This tax credit is available to individuals for registration and membership costs paid in the taxation year of up to $250 per child for 2016 ($500 for 2015 & earlier years), for prescribed programs of artistic, cultural, recreational or developmental activity for their children who are, at the beginning of the taxation year
The tax credit is calculated using the lowest tax rate of 15%, so the maximum tax credit per child will be $37.50 for 2016 ($75 for 2015 & earlier years).
An additional tax credit is available to an individual for a child with a disability. The additional credit is $500 x the lowest tax rate, if the total of eligible costs for that child in the year is $100 or more. This brings the maximum tax credit to $150 for a child with a disability.
Example of calculation of children's arts tax credit for 2011 to 2015 taxation years - Note that the maximum for 2016 will be $37.50, so with the additional credit for a child with a disability the maximum for 2016 will be $112.50:
The tax credit may be claimed by either spouse, or apportioned between them.
Eligible programs include the following, which are not part of a school's curriculum:
Artistic, cultural, recreational or developmental activity means a supervised activity suitable for children (other than a physical activity) that
The cost of accommodation, travel, food or beverages are not included.
Any costs which qualify as child care costs must first be claimed as child care costs, with the remainder of eligible costs then claimed through the arts credit.
Any costs which qualify for the Children's Fitness tax credit cannot be claimed for the Children's Arts credit.
For more information, see Canada Revenue Agency (CRA) Line 370 Children's Arts Tax Credit (CATC).
BC Child Arts Tax Credit started in 2012. This is dependent on the Federal credit, which is eliminated for 2017. There is no intention by the current BC government (as of March, 2017) to let this credit be eliminated, but since there is now an election in the works, it will depend on the government after the election.
Yukon Child Fitness Credit
Yukon has a non-refundable children's arts tax credit which was based on the Federal credit. Yukon tabled amendments so that the reduction and elimination of the Federal Children's Arts Credit did not reduce or eliminate the Yukon Children's Arts Credit. See their April 13, 2016 Press Release. The Yukon credit is:
Other Tax Credits for Children
See also:- Tax Information for Students
- links to all information on TaxTips.ca related to persons with disabilities.
Tax Tip: Keep the receipts for your children's arts and cultural activity programs.
Revised: September 19, 2017
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